Harvard Case - Lisbon Revisited
"Lisbon Revisited" Harvard business case study is written by Laura Alfaro, Haviland Sheldahl-Thomason. It deals with the challenges in the field of Business & Government Relations. The case study is 15 page(s) long and it was first published on : Feb 12, 2018
At Fern Fort University, we recommend that Lisbon embrace a comprehensive strategy focused on leveraging its unique assets ' its rich history, cultural heritage, and strategic geographic location ' to become a leading hub for innovation, sustainability, and international business. This strategy should prioritize the following key areas:
- Attracting Foreign Investment: Developing a robust and transparent investment framework, including tax incentives, streamlined regulatory processes, and support for infrastructure development, to attract foreign direct investment.
- Fostering Innovation: Establishing a thriving ecosystem for innovation, including incubators, research centers, and public-private partnerships, to drive technological advancement and entrepreneurship.
- Promoting Sustainable Development: Implementing ambitious environmental sustainability initiatives, including renewable energy adoption, green infrastructure development, and sustainable tourism practices, to position Lisbon as a leader in the global green economy.
- Enhancing Connectivity: Investing in transportation infrastructure, including high-speed rail and air connections, to improve connectivity and facilitate trade and tourism.
- Developing Human Capital: Investing in education and skills development programs to equip the workforce with the necessary skills to meet the demands of a modern, knowledge-based economy.
2. Background
The case study 'Lisbon Revisited' explores the challenges and opportunities facing the city of Lisbon in the wake of the 2008 financial crisis. The city, once a vibrant hub of international trade and finance, had experienced a significant decline in economic activity and faced high unemployment rates. The case study highlights the need for Lisbon to develop a new strategic vision to revitalize its economy and position itself for future growth.
The main protagonists of the case study are the city's leadership, who are tasked with developing a plan to address the city's economic challenges and attract new investment. The case study also highlights the role of various stakeholders, including businesses, investors, and citizens, in shaping the city's future.
3. Analysis of the Case Study
Lisbon's challenges are rooted in a complex interplay of economic, social, and political factors. The case study can be analyzed through the lens of several frameworks, including:
- Porter's Five Forces: Analyzing the competitive landscape reveals that Lisbon faces intense competition from other European cities vying for investment and talent. However, Lisbon possesses unique strengths, including its rich cultural heritage, strategic location, and relatively low cost of living, which can be leveraged to create a competitive advantage.
- SWOT Analysis: A SWOT analysis reveals that Lisbon possesses several strengths, including a skilled workforce, a favorable climate, and a vibrant cultural scene. However, it also faces weaknesses, such as high unemployment, outdated infrastructure, and a lack of investment in innovation.
- Economic Cycles and Trends: The case study highlights the impact of the 2008 financial crisis on Lisbon's economy. The city needs to adapt to the changing global economic landscape and capitalize on emerging trends, such as the growth of the digital economy and the increasing demand for sustainable solutions.
4. Recommendations
To achieve its goal of becoming a leading hub for innovation, sustainability, and international business, Lisbon should implement the following recommendations:
1. Attracting Foreign Investment:
- Develop a comprehensive investment promotion strategy: This strategy should include tax incentives, streamlined regulatory processes, and targeted marketing campaigns to attract foreign investors.
- Establish a dedicated investment agency: This agency would be responsible for promoting Lisbon as an investment destination, providing support to investors, and facilitating the establishment of new businesses.
- Invest in infrastructure development: This includes improving transportation infrastructure, upgrading digital connectivity, and developing modern business parks.
2. Fostering Innovation:
- Create a thriving ecosystem for innovation: This includes establishing incubators, research centers, and public-private partnerships to support entrepreneurship and technological development.
- Promote collaboration between universities, businesses, and government: This will facilitate knowledge transfer and the development of innovative solutions.
- Invest in education and skills development: This will ensure that the workforce is equipped with the necessary skills to thrive in a knowledge-based economy.
3. Promoting Sustainable Development:
- Implement ambitious environmental sustainability initiatives: This includes adopting renewable energy sources, developing green infrastructure, and promoting sustainable tourism practices.
- Leverage Lisbon's natural assets: This includes promoting eco-tourism, developing green spaces, and investing in sustainable urban planning.
- Promote sustainable business practices: This includes providing incentives for businesses to adopt environmentally friendly practices and investing in green technology.
4. Enhancing Connectivity:
- Invest in transportation infrastructure: This includes improving high-speed rail connections, expanding airport capacity, and developing a modern public transport system.
- Promote digital connectivity: This includes investing in broadband infrastructure and promoting the development of digital services.
- Enhance connectivity with other European cities: This includes strengthening partnerships with other European cities and promoting cross-border collaboration.
5. Developing Human Capital:
- Invest in education and skills development: This includes providing access to high-quality education, promoting vocational training, and supporting lifelong learning.
- Develop programs to attract and retain talent: This includes offering competitive salaries, providing attractive living conditions, and creating a welcoming environment for international professionals.
- Promote entrepreneurship and innovation: This includes providing support for startups, promoting innovation, and creating a culture of entrepreneurship.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with Lisbon's strategic goals of attracting investment, fostering innovation, and promoting sustainable development.
- External customers and internal clients: The recommendations aim to attract foreign investors, businesses, and skilled workers, while also improving the quality of life for Lisbon's residents.
- Competitors: The recommendations are designed to help Lisbon compete effectively with other European cities for investment and talent.
- Attractiveness ' quantitative measures if applicable: The recommendations are expected to generate significant economic benefits, including increased investment, job creation, and improved quality of life.
6. Conclusion
Lisbon has a unique opportunity to become a leading hub for innovation, sustainability, and international business. By implementing the recommendations outlined in this case study solution, Lisbon can leverage its strengths, address its weaknesses, and position itself for future growth and prosperity.
7. Discussion
Alternative strategies could include focusing solely on attracting tourism or becoming a major financial center. However, these options carry significant risks. Tourism can be volatile and susceptible to economic downturns, while a focus on finance could exacerbate existing economic inequalities.
The recommendations presented in this case study solution are based on the assumption that Lisbon is willing to make the necessary investments in infrastructure, education, and innovation. However, these investments require significant financial resources and political will.
8. Next Steps
To implement the recommendations, Lisbon should establish a clear timeline with key milestones, including:
- Year 1: Develop a comprehensive investment promotion strategy, establish a dedicated investment agency, and initiate infrastructure development projects.
- Year 2: Launch innovation programs, establish incubators, and promote collaboration between universities, businesses, and government.
- Year 3: Implement ambitious environmental sustainability initiatives, invest in renewable energy, and promote sustainable tourism practices.
- Year 4: Enhance transportation infrastructure, improve digital connectivity, and develop a modern public transport system.
- Year 5: Invest in education and skills development, develop programs to attract and retain talent, and promote entrepreneurship and innovation.
By implementing these recommendations, Lisbon can transform itself into a dynamic and thriving city, attracting investment, fostering innovation, and promoting sustainable development.
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